Veterans often lose out on Social Security

By Amy Hoak

Seven out of 10 veterans either didn’t know or underestimated the reduction in monthly Social Security benefits that comes with claiming them at 62, instead of 66. And nine out of 10 weren’t aware how much their benefit would be boosted if they waited to claim at age 70.

Reuters

Did he claim Social Security too soon?

That’s according to a recent Kiplinger Washington Editors survey of 1,000 U.S. veterans between the ages of 50 and 70, conducted at the end of September. And it suggests veterans could be losing out on the retirement benefits they’re entitled to. (Some long-serving veterans are eligible for military retirement pay, but most veterans don’t serve long enough to qualify.)

But waiting to claim pays off big time: The Social Security benefit an American would be due at 66 years old is reduced by 25% when he or she claims it at age 62. After 66, the benefit rises by roughly 8% each year that a retiree delays claiming—up to age 70. (Example: If someone was due $1,200 a month at age 66, she’d only get $900 a month if she started Social Security benefits at 62. But she’d be due $1,584 a month if she claimed at age 70.)

Story Conversation

About Encore

Encore looks at the changing nature of retirement, from new rules and guidelines for financial security to the shifting identities, needs and priorities of people saving for and living in retirement. Our lead blogger is editor Matthew Heimer, and frequent contributors include editor Amy Hoak, writer Catey Hill, and MarketWatch columnists Elizabeth O’Brien, Robert Powell and Andrea Coombes. Encore also features regular commentary from The Wall Street Journal retirement columnists Glenn Ruffenach and Anne Tergesen and the Director of the Center for Retirement Research at Boston College, Alicia H. Munnell.